Case Law Details
Savleen Kaur Vs ITO (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT) in Delhi recently delivered a significant ruling in the case of Savleen Kaur Vs ITO, concerning the delayed deposit of Employees Contribution to ESI/PF. The case underlines the Tribunal’s perspective on disallowances in Section 143(1) proceedings and sets a crucial precedent for future cases.
The case revolved around a delay in depositing the employees’ contribution, and the ITAT Delhi stood firm on its stance towards the delay. The tribunal upheld that such disallowances can indeed be made by the Central Processing Centre (CPC), Bengaluru, while processing the return u/s 143(1) of the Act. This conclusion was derived after careful consideration of the Hon’ble Supreme Court’s decision in the Checkmate Services Pvt Ltd case and the Tribunal’s decision in the PR Packaging Service case.
This judgement stands significant as it clearly states that the ratio decidendi of the Hon’ble Supreme Court applies equally to the intimation under Section 143(1) of the Act. It emphasizes that any interpretation otherwise would lead to chaos and discrimination, as taxpayers whose returns are processed by the CPC would escape disallowances even if the employees’ contribution is deposited after the due date.
FULL TEXT OF THE ORDER OF ITAT DELHI
Please become a Premium member. If you are already a Premium member, login here to access the full content.
